Eleven of this year's 13 IPOs are trading on a premium, including Anthony Bolton's China Special Situations fund, according to Numis Securities.
The broker’s data shows despite the reluctance of many seasoned investors to buy new issues because they tend to underperform, this year’s IPOs have proved profitable. As well as trading at a premium, the new launches have delivered an average return of 4.7% compared to the FTSE All Share, which is unchanged year to date, says Numis. Head of research Charles Cade says: “Many long-term followers of the investment companies sector are reluctant to buy new issues, and some cynics have a policy never to buy funds at NAV or above. “This is understandable as history suggests closed-end f...
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